CHL downplays fresh B2L funding

CHL Mortgages chief executive Bob Young has played down the impact new funding for lenders such as Paragon Mortgages and Precise Mortages will have on the buy-to-let market.

Young says although it is good to see funding coming into the market it is only chipping away at the edges. He says he would love to have the £200m funding Paragon obtained.

But he adds: “At the height of the market we were doing around £3bn of lending and Paragon about £4bn.”

CHL announced last week that it reduced its gross arrears over 30 days by 22% in Q3 2010. But it has no time frame for returning to lending.Young says: “I can’t see things improving until the middle of next year.”